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... the Ohio Attorney General reached a settlement with bankrupt subprime mortgage lender New Century Financial Corporation. Under the settlement, New Century and its subsidiaries cannot initiate new foreclosures, pursue pending ... disclosures; serial disclosures just make it more difficult for plaintiffs as a practical matter. The point . . . is that the price of Countrywide securities dropped as the disclosures accumulated." [106] However, the court did acknowledge that "dramatic market shifts will ...

... as a way to avert dismissal, may suggest the constraints that plaintiffs in other cases may face in trying to rely on the Countrywide and New Century dismissal motion denials. It should be noted that relatively few of the dismissal motion denials thus ... have added the Impac dismissal to my list of subprime and credit crisis securities lawsuit resolutions, which can be accessed here. The "Ultimate Solution" to Corporate Financial Misconduct?: In a March 10, 2009 press release (here), Fuwei Films, ...

... complete the merger is not "distinctively unique" as it is like "the motives that have been found to be generally possessed by most corporate directors." She also found that the plaintiffs failed to allege any concrete and personal benefit the completion of ... here. Special thanks to a loyal reader for forwarding me a copy of the Radian decision. Dismissal Denied Again in Countrywide Case: Perhaps by contrast, and in one of the prominent cases in which a dismissal motion has been denied, on April ...

[JURIST] The US Department of Justice and the Federal Bureau of Investigation (FBI) [official websites] have launched a criminal investigation into troubled mortgage lender Countrywide Financial [corporate website], according to a New York Times report Sunday. Federal authorities are investigating whether Countrywide criminally misrepresented its financial condition. The FBI is also cooperating

... high profile cases (refer here), predetermined trading plans remain a good idea. A July 1, 2009 dismissal of a securities class action lawsuit pending in the Southern District of New York underscores the potential protective benefit that a trading plan ... sufficient to rebut scienter allegations, and which is discussed in an earlier post, here. Special thanks to Adam Savett of the Securities Litigation Watch for providing a copy of Judge Baer's opinion. Best Boards in America?: When Eric Jackson ...

... huges losses due to the downturn in real estate and is seeking to deny coverage on assertions of Countrywide misconduct. The United Guaranty Corporation is in the business of issuing "private mortgage insurance." United Guaranty's website explains that private mortgage ... Mac" -- "Wall Street firms, private conduits, and other issuers of jumbo mortgage-backed securities - in other words, the 'private-label marketplace.'" United Guaranty explains that "when these large loans are packaged together, ...

Countrywide executives must face the music for deception and fraud as the Securities and Exchange Commission (SEC) has brought charges against the former Chief Executive Officer (CEO) Angelo Mozilo and two executives for ... . When it collapsed in 2008, the Bank of America acquired Countrywide for more than $4 billion. This case is important as the public attempts to assign blame for the subprime mortgage collapse. Many corporate executives use a common defense against financial malfeasance, that ...

... with a request for preliminary court approval. Under the stipulation, the case is to be settled by a payment of $55 million, to be funded entirely by Countrywide's fiduciary liability insurers. The plaintiffs first filed their complaint in September 2007. As reflected in the ... exposure and the extent to which that exposure may largely be uninsured, on August 10, 2009 State Street Corporation filed its Form 10-Q (here), in which among other things the company reported that the approximately $625 ...

... and to the shareholders' detriment. Excessive CEO pay remains a widely perceived marker for poor corporate governance and even for securities litigation risk. But recent scholarly analysis of senior corporate executive compensation suggests ... Angeles has denied the defendants' motion to dismiss the shareholders' derivative lawsuit that has been filed against Countrywide Financial, as nominal defendant, and certain of its directors and officers. (A description of the lawsuit can be found here.) ...

... district court in that case specifically denied KPMG's motion to dismiss (refer here). In addition, in the Countrywide subprime-related securities lawsuit, the district court found denied KPMG's renewed motion to dismiss the claims ... no assurances that the remaining amount would be adequate for the company's continuing litigation. The potential cost of serious corporate litigation was also highlighted in the recent Broadcom options backdating derivative lawsuit settlement (about which refer here). ...